In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
Costco Wholesale Corporation Part II Costco Wholesale Corporation is an extremely competitive industry. The following writing will discuss the financial health, technological advantages, globalization, and conducting benchmarking analysis in comparison to Wal-Mart and Target Corporation. To manage financial statements efficiently is by means of income statement, balance sheet, and cash flow. The technology has advance and made developments through the year, technological advantage in Costco Company is helping the progress for success. Globalization is the key to survival that allow to a company to be competitive and offer diverse services and convenience to consumers.
Rivalry in the grocery industry is a strong competitive force for several reasons. First, companies are using competitive weapons such as sales specials, coupons, company card to save additional money, and high use of advertising. Second, customers switching cost is low. Last, competitors are becoming equal in size and therefore able to achieve similar results. In this case, Winn Dixie, Publix, and Wal-Mart are the main competing firms within the industry in my area.
The ability to increase sales and stores in America relies on customers’ preference in buying JCP products hence; the strategy is subject to dealing with customers’ satisfaction first before addressing their expansion strategy. The ability to introduce more brands to the global market through the re-organization of the departments is seen to be a proper step to achieving the corporate strategy in globalizing the business. However, this would be hampered by stiff competition from the three major
Grocery stores are in competition with smaller markets like Kudlers and Whole Foods. If the brand name grocery stores like Ralphs and Vons did not offer organic and specialty items, the market structure of Kudler Fine Foods would differ. This market structure positively affected Kudler because there was no barrier to entrance within the quality foods market. What negatively affects the company with this market structure is that they are compared to big companies who are able to supply some of these rare items at a more competitive price. One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base.
“Their goals are nourishing their consumers, nourishing their neighbors, nourishing their employees and nourishing their planet”. SWOT analysis: Strengths: high skills in marketing and R&D, new product introductions, knowledge and experience in the canning and preserving business, strong performance in non-soup segments and expand business in internationally. Weaknesses: working capital and raising expenditures or manufacturing cost. Opportunities: vertical integration, increase differentiation and cost advantages, innovative products and packaging. Threats: variation in raw material prices, raise labor costs, raise in substitutes, change in customer tastes, lower market growth and strong pricing pressure from competitors.
Boots have to make sure that they are able to meet customer expectations P4 - Identify the competitive factors in the retail environment a selected organization faces Bargaining power of buyers: Customers are powerful potential buyers as they can switch easily and doesn’t cost them much as they have stores in easy locations. However supermarkets will have to reduce prices in order to attract customers. There are a lot of small sellers and few large buyers as the buyers buy in large quantities which show that they are powerful. A single buyer is a large customer to a firm as they buy more. Buyers purchase from multiple sellers at once, such as customer stores.
Advertising is a large part of Target’s marketing management. The retail stores sell a large variety of high quality items at lower prices than the competitors, therefore, selling more products. Target’s marketing team is constantly re-evaluating the products sold to assure that their customers stay satisfied with the items that are in stock. To guarantee that customers stay completely satisfied, Target will special order items if requested by a customer. To continue to be the largest retail store, Target has to make sure that their prices are the lowest and that the products they sell meet all of the wants and needs of each customer.
Different people see this growing problem through different lenses and correlate different reasons to it. Yet it is clear that factors of globalization such as outsourcing, neo-liberalism and fast paced technology are fueling the ever-widening gap between the poor and the rich. One of Globalizations main factors which have aided the formation of a global economy is outsourcing. Outsourcing is basically cutting the middle-man and getting to the source, in order to reduce costs whilst maximizing profits. Companies which have been successfully able to outsource its goods all the way to countries across the globe with much cheaper labor and commodities have done astronomically well.
Goal: The goal is to figure out which sales promotion will be a win-win for all parties involved in the process. This includes the company, manufacturer, wholesaler, and the consumers. Company: Giant Consumer Products (GCP) People- Allan Capps: CEO, Byron Flatt: VP of Sales, Mary Davidson: FFD General Manager, and Mike Sanchez: Director of Marketing -A main concern for GCP is to preserve brand equity and not hurt the overall image by discounting. Current issues within GCP: 1) They need to increase revenue in order to meet Wall Street’s projections or it can seriously hurt the division’s standing within the company. 2) They need to increase demand of their product without hurting long term goals Factors to Consider: 1) 2.8% increase in growth rate between 2003 and 2007 (has slowed down since) 2) Customers view sales promotions as a very positive thing and keeps the product on their minds 3) 50% of consumers’ money spent on food is at restaurants (expected to decrease because of current hurting economy) 4) Current trend of healthier eating and focusing on the ingredients 5) Different types of family dynamics…family eating, childless families, etc.